In the first quarter of 2024, net sales for the Södra Group amounted to SEK 7,613 million (8,002), down 5 percent year-on-year. Operating profit totalled SEK 568 million (1,085), representing an operating margin of 7 percent (14). Underlying profitability increased significantly quarter-on-quarter. Return on capital employed was 9 percent (19) and the equity ratio declined to 63 percent.
Given the market conditions and macro-environment, the first quarter result is in line with expectations. The result reflects the weak trend in construction activity and decreased supply in the raw material market.
“We are now seeing the strength of the cooperative and decades of strategic investments. There is a strong interest in, and need for, forest products, with great opportunities for those who succeed in using the whole tree wisely. With our strong industrial structure and high level of innovation, we are creating sustainable products for a global market. The new situation in the raw material market, with demand higher than supply, is playing a role, but by doing more with each tree and maximising the value of every wood fibre, forests can last a long way. This is Södra’s area of expertise. But we will continue to develop and be a driving market player while securing the profitability of forest estates,” said Lotta Lyrå, President of Södra.